Gray Digital Operations
What Makes Gray Digital uniquely different?
One of the many things that makes Gray Digital unique is how it is structured and how it operates. Gray Digital is a professionally managed financial technology company. Gray Digital utilizes the safety and security developed by traditional financial investment strategies and applies them to the exciting world of cryptocurrency and crypto markets. By utilizing blockchain technology, Gray Digital is able to conduct cheap, lightning-speed transactions that settle on a transparent and immutable public ledger. For maximum safety and security, Participating Members' deposits are held off-chain through a regulated custodian. This allows for funds to be guarded while being utilized by Gray Digital. In most cases, funds that are applied to various market sectors utilize a Brokerage company to conduct these transactions. The Gray Fund is also backed by a bank LOC which was secured to fortify the fund by providing a bank guarantee of payment for goods and services through an irrevocable letter of credit.
Blockchain transfers
Blockchain transactions conducted within the Gray Digital Platform will be conducted within a secure environment of a Decentralized Application (dApp) developed for the Gray Digital ecosystem. The dApp provides Participating Members access to the smart contracts supporting Gray Digital Products & Services. These smart contracts are backed-up and secured with the use of hardware wallets. This dApp can be accessed on the Gray Digital website.
All blockchain transactions outside of the Decentralized Application (dApp) are conducted with a secure, single purpose hardware wallet. These hardware wallets only conduct on-chain transfers of funds and do not participate in any trades, sales, purchases, investments, air drops, or any other crypto transactions. All transactions are documented and settle on a transparent and immutable public ledger.
Each hardware wallet address will be publicly identified on the website for the Gray Digital community to monitor for full transparency and auditing.
Other Hardware and Software Security
Gray Digital utilizes additional hardware and software security options such as the use of Virtual Private Network (VPN) technology and secure Virtual Private Server (VPS) technology. The Gray Digital team will constantly evaluate its security strategies and adjust based on available technology and strategies.
Each Gray Digital hardware wallet seed phrase is backed up on a steel cypher wallet for maximum safety, security and retention. Seed phrases will be stored at an undisclosed secure location.
Custodian
When a Participating Member submits a deposit of funds, those funds are sent off-chain to a third-party custodian. The custodian is utilized as an intermediary between Gray Digital and a Brokerage account managed by Gray Digital. This ensures that funds are secure when being transferred between accounts off-chain. A financial custodian is a company that holds on to financial assets on behalf of Gray Digital and the Participating Members for safekeeping to prevent them from being stolen or lost. Any funds that are not being utilized in the market, or actively entangled in Gray Digital operations are held by the custodian.
Brokerage
When Gray Digital funds are being utilized in the markets, they are sent to a brokerage. A broker is a person or firm who arranges transactions between a buyer and a seller in the form of an intermediary. Utilizing a brokerage provides Gray Digital and Participating Members with increased safety and security for funds.
Gray Digital utilizes Interactive Brokers LLC (IBKR), an American multinational brokerage firm. It operates the largest electronic trading platform in the United States by number of daily average revenue trades. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, funds, and cryptocurrencies.
Bank Letter of Credit (LOC)
A Letter of Credit (LOC) is correspondence issued by a bank guaranteeing payment for goods and services purchased by the one requesting the letter. An certified Letter of Credit cannot be canceled or modified in any way without explicit consent by the affected parties involved. Gray Digital has obtained a Certified Bank LOC for the Gray Fund professionally managed portfolio. Gray Digital was provided a five million dollar ($5,000,000) LOC by the bank. This LOC can be increased quarterly, based on balance, collateral, and returns of the Gray Fund. The funds are used to increase long-term position sizes, and for additional liquidity for withdrawals (instead of closing long term positions, this helps with liquidity payouts to Participating Members). Additionally, these funds essentially act as a "new user" in the fund, who does not have to be paid back the returns that other Participating Members are awarded. As such, its "earnings" are recirculated to Participating Members, thus increasing overall yield for the fund. This strategy provides Gray Digital overcollateralization of the fund by approximately 200% ensuring Participating Members more safety and security in their funds.
The Bank LOC has been secured with Saudi National Bank (SNB). Saudi National Bank, also known as SNB AlAhli, is the largest commercial bank in Saudi Arabia. SNB holds a leading position with its more than 7.4 million customers, meeting their needs through outstanding products, services, and innovative solutions, harnessing technology to enhance their experience. SNB has approximately $243.8 billion in assets. Additional details can be found in the Documentation section of the Gray Digital website.
Structure Summary
By combining all of these tools, Gray Digital has created an unparalleled financial technology company in terms of modernized investment strategies, transparency and security. Gray Digital is a financial venture that participates in multiple markets, has exposure to diverse assets, conducts instant/secure financial transactions on a transparent and immutable public ledger, operates with a regulated 3rd party custodian to secure customer funds, utilizes a Brokerage account to conduct safe trades and investments, and acquired full fund liquidity backup through the deployment of a certified Bank LOC.
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